MASSDEVICE ON CALL — The medtech venture capital shortage continues to plague young companies, with 2013 funding slated to be as much as 40% lower than it was 5 years ago.
That means medtech startups are searching for unorthodox ways to fill their coffers, including by asking family members and local celebrities to kick in some cash, according to a Wall Street Journal report.
Analysts project that VCs will spend about $2.1 billion on medtech startups this year, a dramatic drop from a 2007 and a stark contrast to the ever-increasing appetite for software investment, which is expected to hit nearly $11 billion this year.
The dearth of funding has sent medtech startups in search of buyers earlier and earlier in their growth, and some of the industry’s biggest players are happy to comply. Boston Scientific (NYSE:BSX) corporate business development vice president Charlie Attlan said that the company is forming relationships with ever-younger companies.
"We might have an earlier-stage collaboration, and they give up the hope of a home run if and when we acquire them," he told the Journal.
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